Annual report pursuant to section 13 and 15(d)

SEESMART ACQUISITION (Tables)

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SEESMART ACQUISITION (Tables)
12 Months Ended
Dec. 31, 2012
Summary of Distributed and Undistributed Liability Consideration

The following table summarizes the distributed and undistributed consideration by type as of December 31, 2012:

 

     Distributed Consideration      Undistributed
Consideration
     Unfunded Escrow      Total Consideration  
     Shares      Amount      Shares      Amount      Shares      Amount      Shares      Amount  

Cash

     —         $ 7,659,721         —         $ 647,559         —         $ 1,793,309         —         $ 10,100,589   

Common stock

     6,607,050         4,294,583         341,987         222,290         791,856         514,707         7,740,893         5,031,580   

Series D preferred stock

     11,177         950,045         738         62,730         —           —           11,915         1,012,775   
     

 

 

       

 

 

       

 

 

       

 

 

 
      $ 12,904,349          $ 932,579          $ 2,308,016          $ 16,144,944   
     

 

 

       

 

 

       

 

 

       

 

 

 
Preliminary Values Assigned to Assets Acquired and Liabilities Assumed

The following amounts represent the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed from the Seesmart acquisition. The final determination of the fair value of certain assets and liabilities including income taxes and contingencies, including the litigation discussed in Note 18, will be completed within the one year measurement period from the date of acquisition as required by the FASB ASC Topic 805, “Business Combinations”.

 

Cash

   $ 68,661   

Accounts receivable

     1,048,345   

Inventory

     1,352,326   

Goodwill

     11,456,593   

Customer relationships

     7,273,000   

Trademarks

     3,434,000   

Other assets

     333,470   
  

 

 

 

Assets acquired

   $ 24,966,395   

Accounts payable

   $ 2,692,064   

Accrued liabilities

     1,137,045   

Deferred revenue

     104,000   

Customer deposits

     1,466,750   

Convertible debt accelerated under change in control

     3,421,592   
  

 

 

 

Liabilities assumed

   $ 8,821,451   
  

 

 

 

Preliminary purchase price

   $ 16,144,944   
Business Acquisition, Pro Forma Information

The following supplemental pro forma information assumes the acquisition had been completed on January 1, 2011 and is not indicative of the results that would have been achieved if the transaction had been consummated on such date or of the results that might be achieved in the future.

 

     Year Ended December 31,  
     2012     2011  

Revenues

   $ 11,611,751      $ 18,387,512   

Loss from continuing operations

   $ (17,037,069   $ (8,559,417

Income (loss) from discontinued operations

   $ 683      $ (44,156

Net loss

   $ (17,036,386   $ (8,603,573
Pro Forma Adjustments

The pro forma supplemental information reflects the following pro forma adjustments:

 

     Year Ended December 31,  
     2012     2011  

Amortization of customer relationships

   $ (606,083   $ (606,083

Amortization of trademarks

     (286,167     (286,167

Interest on convertible debt

     199,643        140,689